NAC 119.010Definitions. (NRS 119.240)As used
in this chapter, unless the context otherwise requires, the words and terms
defined in chapter 119 of NRS and NAC 119.015 to 119.085,
inclusive, have the meanings ascribed to them in that chapter and those sections.

1. Offers for sale any subdivision or lot,
parcel, unit or interest in any subdivision;

2. Causes or induces, directly or
indirectly, any person to acquire any interest in a subdivision or lot, parcel,
unit or interest in any subdivision;

3. Is used to induce prospective purchasers
to attend property sales presentations; or

4. Is used substantially for the retention
of purchasers after sale.

[Dep’t of Commerce, Real Estate Div., § 2, eff. 7-16-80]

NAC 119.020“Broker of record” defined. (NRS 119.240)“Broker
of record” means a real estate broker licensed under chapter 645 of NRS who is appointed by a
developer to fulfill the requirements of NRS 119.180.

[Dep’t of Commerce, Real Estate Div., § 3, eff. 7-16-80]

NAC 119.025“Common promotional plan” defined. (NRS 119.240)“Common
promotional plan” means any offering, sale or lease of subdivided land by a
developer, or a group of developers acting in concert, and the land is
contiguous or is known, designated or advertised as a common unit or
development or by a common name.

[Dep’t of Commerce, Real Estate Div., § 4, eff. 7-16-80]

NAC 119.030“Nevada statement of record” defined. (NRS 119.240)“Nevada
statement of record” means the application which a developer must file with the
Division pursuant to NRS 119.140.

[Dep’t of Commerce, Real Estate Div., § 5, eff. 7-16-80]

NAC 119.035“Off-premises contact” defined. (NRS 119.240)“Off-premises
contact” or “OPC” means a solicitation made from a location other than a
developer’s or real estate licensee’s regular place of business, including a
location from which telephone solicitations are made, to induce persons to
attend a sales presentation for a subdivision.

[Dep’t of Commerce, Real Estate Div., § 6, eff. 7-16-80]

NAC 119.040“Promotional meeting” defined. (NRS 119.240)“Promotional
meeting” means any sales presentation given to any number of potential
purchasers at one time at any location.

NAC 119.050“Published material” defined. (NRS 119.240)“Published
material” means anything published in any medium by any person subject to chapter 119 of NRS or these regulations,
including:

1. Any newspaper or periodical, except a press
release which does not include any statement about the sales volume of the
subdivision, the financial strength of the developer or the nature of the
subdivision or any investment potential therein;

2. Any radio, television, telephonic or
other electronic broadcast or display;

5. Oral statements made by a developer or a
representative thereof at any promotional meeting.

[Dep’t of Commerce, Real Estate Div., § 9, eff. 7-16-80]

NAC 119.055“Registered representative” defined. (NRS 119.240)“Registered
representative” means any person who is employed or engaged by a developer to
induce or solicit persons to attend an offer or sale of subdivision property
and to distribute information approved by the Division.

[Dep’t of Commerce, Real Estate Div., § 10, eff. 7-16-80]

NAC 119.060“Respondent” defined. (NRS 119.240)“Respondent”
means any person against whom a complaint is initiated by the Division or any
other person.

[Dep’t of Commerce, Real Estate Div., § 11, eff. 7-16-80]

NAC 119.065“Salesperson” defined. (NRS 119.240)“Salesperson”
means any person who is licensed under chapter
645 of NRS and is employed or engaged by a licensed real estate broker for
compensation or otherwise to perform any act or transaction included in the
definition of a real estate broker in NRS
645.030.

[Dep’t of Commerce, Real Estate Div., § 12, eff. 7-16-80]

NAC 119.070“Time-share estate” defined. (NRS 119.240)“Time-share
estate” means an estate in fee simple or an estate for years for a period of 3
years or more conferring a right to periodic possession of a specific unit of a
subdivision.

[Dep’t of Commerce, Real Estate Div., § 13, eff. 7-16-80]

NAC 119.075“Unit broker” defined. (NRS 119.240)“Unit
broker” means a licensed real estate broker who, on behalf of a developer and
for gain, employs or engages any person to induce a person to become a
prospective purchaser from a developer.

[Dep’t of Commerce, Real Estate Div., § 14, eff. 7-16-80]

NAC 119.080“Vacation certificate” defined. (NRS 119.240)“Vacation
certificate” means a written promise which offers accommodations in or
transportation to any location as part of a program to solicit prospective
purchasers to attend a sales presentation for a subdivision.

[Dep’t of Commerce, Real Estate Div., § 15, eff. 7-16-80]

NAC 119.085“Written plan” defined. (NRS 119.240)“Written
plan” means a statement of the methods proposed to be employed in the
procurement of prospective purchasers, the sale to purchasers and the retention
of purchasers after sale which a developer must file pursuant to NRS 119.180.

[Dep’t of Commerce, Real Estate Div., § 16, eff. 7-16-80]

NAC 119.110General procedures for filing. (NRS 119.184, 119.240, 119.320)The
following general procedures must be followed in filing a Nevada statement of
record, advertising and other required material:

1. Required material must be filed with the
Division by personal delivery or by mail, addressed to the office of the
Division in Carson City.

2. Fees must be made payable to the “Nevada
Real Estate Division.”

3. The date of a filing for the purpose of chapter 119 of NRS and these regulations
is the date when a statement, document or other material is received by the
Division in the form required by these regulations together with the prescribed
fee.

4. The Nevada statement of record must be
typed in black ink in standard or elite type on a form supplied by the
Division. Supplemental material, except deeds, title policies, maps, plats,
advertising and other official documents, must be typed on good quality,
unglazed, legal size paper with a 2-inch margin at the top and a 1 1/2-inch
margin on each side. Illegible photocopies must not be submitted.

5. The developer shall not incorporate by
reference the answers to questions which were previously filed in a Nevada
statement of record. The developer may specifically incorporate by reference
documentation from a previous filing with the Division, but care must be taken
in referring to a previous filing not to incorporate obsolete data.

6. Copies of movies, videotapes, radio
broadcasts (on cassette tape only, not reel-to-reel) or other bulky items which
may be required in order to comply with the provisions of the written plan must
be separate from the bound documents filed with the Division but clearly
identified with the specific filing.

[Dep’t of Commerce, Real Estate Div., § 18, eff. 7-16-80]

NAC 119.120Approval or disapproval of applications. (NRS 119.240)When a
complete application is submitted to the Division, the Administrator will enter
an order of approval or disapproval no later than 30 days after it has been
filed. The time for entry of the order may be extended by mutual consent of the
Administrator and applicant in writing.

1. A developer who is not exempt from the
provisions of chapter 119 of NRS shall
file a Nevada statement of record on a form furnished by the Division.

2. The developer shall designate in the
statement of record the name and address of the person to whom all
correspondence from the Division should be addressed, and must notify the
Division immediately of any substitution.

3. The statement of record must contain an
index to exhibits.

4. The developer shall notify the Division
of any material change in any of the information filed in his or her statement
of record. The notice must be given within 10 days after the date the developer
knew or should have known of the changes to the statement.

5. Any proposed change to a statement of
record which the developer desires to make must be submitted to and approved by
the Division before the proposed change is to become effective.

6. For purposes of this section, the term
“material change” means any change in the information required under NRS 119.140.

[Dep’t of Commerce, Real Estate Div., § 20, eff. 7-16-80]

NAC 119.140Nevada statement of record: Contents. (NRS 119.240)The
Nevada statement of record must contain the following information:

1. The name and address of the applicant and
his or her ownership, if any, in the proposed subdivision;

2. A list of the places, dates and material
facts pertaining to each permit or license to sell or promote the sale of land,
homes, home improvements, investments or securities, including any revocation,
suspension or denial of such a permit or license by any federal, state, local
or foreign governmental agency, and each criminal conviction or offense charged
involving a sale or promotion;

3. A list of all current litigation in which
the applicant is a party;

4. The name, location, acreage and number of
lots, parcels, units or interests in the subdivision to be offered;

5. The location of subdivision records;

6. The methods by which prospective
purchasers may locate and identify individual lots, parcels, units or
interests;

7. The recording and any governmental
approval of the subdivision;

8. A description of the geology, climate and
physical conditions of the subdivision and its surroundings;

9. A description of all completed or
promised improvements at or away from the subdivision;

10. A description of financial arrangements
for the completion of improvements;

11. A list of all applicable taxes and
assessments and their current status;

12. A description of facilities and services
which are available in the area surrounding the subdivision;

13. A description of common facilities
within the subdivision furnished by the developer;

14. Any filings with any federal, state or
local governmental authority pertaining to the subdivision;

15. A description of all promotional
activities in connection with the subdivision; and

16. Any other information which the Division
requires.

[Dep’t of Commerce, Real Estate Div., § 21, eff. 7-16-80]

NAC 119.150Nevada statement of record: Exhibits. (NRS 119.240)The
information required in the Nevada statement of record must be supplemented by
the following exhibits:

1. The articles of incorporation and
certificate of incorporation of the applicant.

2. A statement of the applicant’s financial
status.

3. Consent by the applicant to service of
process.

4. Maps of the subdivision including
topographic, recorded plat and location maps.

5. Evidence of title to the property.

6. A legal description of each lot, parcel,
unit or interest.

7. Documents which indicate any encumbrance,
covenant, condition or restriction affecting the subdivision.

8. Documents which indicate any
improvements, including the installation of utilities and the financial
arrangements made for them.

9. Copies of all contracts, deeds,
agreements and leases which affect the subdivision.

10. If the applicant is a foreign
corporation and maintains in this state a corporate office for business, a
certificate of qualification for the transaction of business in Nevada issued
by the Secretary of State.

11. A diagram showing the developer’s
relationship to subsidiary and parent companies.

12. Copies of pleadings and any decisions
pertaining to current litigation affecting the applicant or, if the applicant
is a corporation, any of its incorporators or officers.

13. A statement of whether the purchaser is
obligated to pay the costs of a survey.

14. A declaration of the applicant’s
compliance with the provisions of NRS
119.230.

15. Documents showing any state or local
governmental permits or approvals issued in accordance with zoning ordinances
and for improvements, the provision of water or a system for sewerage.

16. An estimate of the cost of any required
wells, prepared by a licensed well driller.

17. Documents showing the assessed valuation
of the lots, parcels, units or interests and the existing rate of taxation.

18. Documents showing the nature and extent
of available police and protection against fire.

19. Documents showing the school district in
which the subdivision is located and which schools are available to residents
of the subdivision.

20. The financial statement, articles of
association and membership agreement of any property owners’ association.

21. The written plan, including all
advertising and other published material.

1. The property
report issued by the Division pursuant to NRS 119.160 will have a cover sheet
as follows, with the language “CONSUMER SHOULD READ THIS REPORT BEFORE SIGNING
ANY PAPER” printed in red:

THE
PROPERTY REPORT OF

THE
NEVADA LAW REGULATING

SUBDIVISION
SALES REQUIRES THAT:

FIRST: A
prospective purchaser or lessee MUST BE GIVEN this subdivision Property Report;

SECOND: The
broker or salesperson MUST REVIEW the contents of this Property Report with
you;

THIRD: If
you purchase any property you MUST SIGN A RECEIPT indicating you have received
this Property Report;

IT
IS RECOMMENDED THAT:

FIRST: You
DO NOT SIGN ANY CONTRACT OR AGREEMENT before you have thoroughly read and
understood it and this Property Report;

SECOND: You
SEE THE EXACT PROPERTY you may be considering BEFORE SIGNING any agreement for
a reservation, option, lease or purchase.

NEVADA
LAW STATES:

You may cancel this contract
of sale, by written notice, until midnight of the 5th calendar day following
the date of execution of the contract. The right of cancellation may not be
waived. Any attempt by the developer to obtain such a waiver results in a
contract which is voidable by the purchaser.

The notice of cancellation
must be delivered personally to the developer or sent by certified mail or
telegraph to the business address of the developer.

The developer shall, within 15
days after receipt of the notice of cancellation, return all payments made by
the purchaser.

2. The property
report may contain any of the information submitted to the Division in the
Nevada statement of record. In addition, if the Administrator determines that:

(a) A property report
would be misleading without the inclusion of general or specific cautionary
statements directed to prospective purchasers, the Administrator will include
those statements which he or she deems to be material to an offer.

(b) Certain information
in the property report should be emphasized in order to avoid misleading purchasers,
the Administrator will emphasize that information.

3. The property
report will also include:

(a) A form to be
completed by the purchaser indicating receipt of the property report; and

(b) A form with which
the purchaser may revoke the purchase.

[Real Estate Div., § 23,
eff. 7-16-80]—(NAC A 10-23-87)

EXEMPTION FROM REGISTRATION

NAC 119.200Registration
required unless developer exempted. (NRS 119.240)Any
developer who over any period divides or proposes to divide any land into 35 or
more lots, parcels, units or interests must apply to the Division to register
the subdivision pursuant to chapter 119
of NRS, unless the developer is exempted from registration by NRS 119.120 to 119.128, inclusive, or NAC 119.200 to 119.250,
inclusive.

[Real Estate Div., § 24,
eff. 7-16-80]—(NAC A 12-3-84; 12-19-89)

NAC 119.205Written request for exemption. (NRS 119.240)In order
to receive a letter of exemption from registration for the classes of exemption
set forth in NAC 119.210 to 119.250,
inclusive, a developer must request in writing an exemption from the Division
and specify the class of exemption for which he or she is applying, and must
submit the information and documents required in those sections.

[Real Estate Div., § 25, eff. 7-16-80]—(NAC A 12-19-89)

NAC 119.210Parcels at least 40 acres in area. (NRS 119.121, 119.240)A
developer must submit the following information and documents to obtain an
exemption from the requirements set forth in NRS 119.130 to 119.160, inclusive, for parcels at
least 40 acres in area, including roadways and easements:

1. A copy of the recorded map showing the
number of each unit of the subdivided property.

2. The name, address and extent of the
interest of each owner of the subdivision.

3. Copies of current articles of
incorporation, instruments of trust, or articles of partnership or association
of the developer or owner.

4. If a developer is a corporation organized
under the laws of another state and maintains in this state a corporate office
for business, a certified copy of the certificate of qualification for the
transaction of business in Nevada issued by the Secretary of State.

5. The exact location of the subdivision and
distances to surrounding communities.

6. The total number of lots, parcels, units
or interests in the subdivision.

7. The total number of acres in the
subdivision.

8. A description of methods by which a
purchaser may locate his or her individual lot, parcel, unit or interest.

9. A current preliminary report or
equivalent document on the title of the subdivision.

10. A description of other property which
the developer owns or in which the developer has an option to buy and which is
adjacent to the subdivision.

11. All advertising and documents intended
to be used which relate to the sale of lots, parcels, units or interests.

12. The promotional name of the subdivision.

13. The names and addresses of any real
estate brokers who are licensed in Nevada and will assist in marketing the
property.

NAC 119.215Property free and clear of all liens. (NRS 119.122, 119.240)A
developer must submit the following information and documents in order to
obtain an exemption under subsection 2 of NRS 119.122 (property free and
clear of all liens):

1. A sworn statement in the form of a claim
of exemption signed by the developer, stating that the subdivision is free and
clear of all liens, encumbrances and adverse claims and that the lots will
remain so until a deed is delivered to the purchaser. The claim of exemption
must also include assurances by the developer that each prospective purchaser
will:

(a) Personally inspect the lot he or she intends to
purchase;

(b) Receive a form which he or she must sign that
affirms he or she has inspected the lot and has received a copy of any
covenants, conditions, restrictions, reservations, easements, taxes and assessments;
and

6. The names and addresses of any real
estate brokers who are licensed in Nevada and who will assist in marketing the
property.

7. The promotional name of the subdivision.

[Real Estate Div., § 27, eff. 7-16-80]—(NAC A 12-3-84)

NAC 119.220Construction of residential building by licensed contractor who
owns land. (NRS
119.120, 119.240)The
notice required of a developer who elects to be exempt from registration
because he or she owns the land, is licensed in this state to construct
residential buildings and will construct a residential building on the land,
must include:

1. A copy of the recorded plat map.

2. The promotional name of the subdivision.

3. The name and number of the license of the
contractor licensed to construct residential buildings in Nevada.

4. A sworn statement signed by the
contractor stating that each lot offered or disposed of will include a
residential building when disposition is completed.

5. A copy of the contract of sale.

6. The names and addresses of any real
estate brokers who are licensed in Nevada and who will assist in marketing the
property.

7. A preliminary title report issued within
15 days before the date of the request for the exemption.

1. The Administrator will make a
determination that a registration is not necessary in the public interest upon
receipt of evidence of the applicant’s compliance with the provisions of NRS 119.230, together with any
other evidence which the Administrator deems necessary to make that determination.

2. The Administrator will use, among others,
the following factors in making a determination:

(a) The intended use of property;

(b) The direction of the growth of the area;

(c) The availability of utilities;

(d) Whether financial assurances have been established
by the applicant; and

(e) The need for housing in the area.

[Real Estate Div., § 29, eff. 7-16-80]—(NAC A 12-3-84)

NAC 119.230Written notice of election. (NRS 119.240)To claim
an exemption from registration for the classes of exemption set forth in NAC 119.220, 119.235 or 119.240, a developer must notify the Division in
writing of his or her election to be exempt from registration, specify the
class of exemption for which he or she is applying and submit any information
and documents required in those sections.

1. A developer must notify the Division in
writing of his or her election to be exempt from registration under paragraph
(a) of subsection 2 of NRS 119.120
(parcels greater than 80 acres).

2. If the developer wishes the Division to
determine his or her eligibility for such an exemption, the developer must
submit the following information and documents:

(a) A copy of the recorded plat map;

(b) The promotional name of the property;

(c) A certified statement of a civil engineer
licensed by the state in which the subdivision is located that each lot,
parcel, unit or interest exceeds 80 acres in size after all easements have been
subtracted;

(d) A sworn statement by the developer that he or
she will not at any time convey a lot, parcel, unit or interest in the
subdivision which is 80 acres or less in size;

(e) A promotional plan; and

(f) The name and address of any real estate brokers
who are licensed in Nevada and who will assist in marketing the property.

[Real Estate Div., § 31, eff. 7-16-80]—(NAC A 12-3-84)

NAC 119.240Disposition to persons engaged in the business of construction. (NRS 119.120, 119.240)

1. A developer must notify the Division in
writing of his or her election to be exempt from registration under subsection
3 of NRS 119.120 (disposition to
persons engaged in the business of the construction of residential, commercial
or industrial buildings for disposition).

2. If the developer wishes the Division to
determine his or her eligibility for such an exemption, the developer must
submit the following information and documents:

(a) A copy of the recorded plat map;

(b) The promotional name of the subdivision;

(c) A sworn, notarized statement signed by the
developer that he or she will convey interests in the subdivision only to
persons who are engaged in the business of construction of residential,
commercial or industrial buildings for disposition; and

(d) The names and addresses of any real estate
brokers who are licensed in Nevada and who will assist in marketing the
property.

3. A developer who is exempt pursuant to
this section must report to the Division all sales of 10 parcels or more over
any period of time to persons engaged in the business of construction,
including the purchaser’s name and address and the lots purchased.

[Real Estate Div., § 32, eff. 7-16-80]—(NAC A 12-3-84;
11-8-88)

NAC 119.250Parcels of less than 1 square yard. (NRS 119.122, 119.240)A
developer must notify the Division in writing of his or her election to be
exempt from registration under subsection 3 of NRS 119.122 (registration not
necessary in the public interest or for the protection of purchasers) for a
subdivision in which parcels of less than 1 square yard are offered for sale
and the sales agreement contains a waiver of notice of condemnation and waiver
of right to proceeds under condemnation.

1. If a developer wishes to conduct sales at
two or more separate locations, except locations of off-premises contacts, the
broker of record shall establish and maintain branch offices as required by chapter 645 of NRS.

2. A developer must obtain approval from the
Division before using any property report, advertising or contract or agreement
which is amended in any way.

3. A developer’s records which are kept
outside this state are subject to inspection and audit by the Division and must
be made available to the Division at its office in Carson City or Las Vegas.

[Real Estate Div., § 36, eff. 7-16-80]—(NAC A 5-2-86)

NAC 119.310Developers: Standards of ethics.
(NRS 119.181, 119.240)A
developer shall comply with the same standards of ethics which are required of
licensed real estate brokers and salespersons as set forth in NRS 645.630 and other relevant
sections of chapter 645 of NRS and
regulations adopted under it.

1. Before a broker applies to become a
broker of record, he or she must make a personal inspection of the subdivision
for which he or she is to be responsible.

2. The broker of record shall obtain from
each purchaser of subdivision property a signed receipt for a copy of the
property report and shall keep the receipt along with a copy of any contract of
sale or other sales agreement and other material in his or her files, within
the State of Nevada. These records must be kept for 3 years or for 1 year after
the final payment has been made on any contract for the sale of property,
whichever is longer. If the broker of record has established branch offices,
the copies of the contracts, agreements, receipts and other material must be
maintained at his or her principal place of business. The material is subject
to inspection and audit by the Division at any time.

3. Every broker of record shall teach his or
her salespersons and registered representatives the contents of these
regulations. The broker of record shall exercise strict supervision over their
activities and over the operation of his or her real estate business, and shall
conduct business in accordance with law and these regulations.

[Dep’t of Commerce, Real Estate Div., § 38, eff. 7-16-80]

NAC 119.330Signing of contracts of sale; applicability of other provisions;
registration of licensed broker or salesperson as representative. (NRS 119.240)

1. All contracts of sale must be signed
either by the broker of record or by his or her authorized broker-salesperson
or salesperson.

2. Nothing in this chapter excuses a
licensed real estate broker or salesperson from complying with the requirements
imposed by chapter 645 of NRS and
regulations adopted under it, except where different requirements are clearly
prescribed by chapter 119 of NRS or
this chapter.

3. A person licensed as a real estate broker
or salesperson under chapter 645 of
NRS may function as a registered representative upon completion of the
requirements for a broker of record, authorized broker-salesperson or
salesperson.

NAC 119.340Registered representatives. (NRS 119.181, 119.240, 119.320)A person
who desires to become a registered representative must file an application for
registration on a form furnished by the Division. An application for
registration must be filed with the Division for each developer represented.
The fee is not returnable.

NAC 119.350Duties imposed by local ordinance. (NRS 119.240)These
regulations do not diminish or otherwise affect the duties of a developer or
real estate licensee established by a county or city ordinance regulating land
sales which has been enacted pursuant to chapter
599A of NRS.

1. All unapproved advertising of a
subdivision and all previously approved advertising which has been modified in
any way must be submitted to and approved by the Division before being used. A
subdivision which is not exempted by chapter
119 of NRS or these regulations may not be advertised for sale until the
advertising is approved in writing by the Division. The Division will render a
decision on the advertising within 60 days from the date it is submitted to the
Division in final form.

2. Advertising must be submitted by the
developer or his or her employee or agent. If an employee or agent of the
developer is to submit the advertising, the developer must notify the Division
in writing that the employee has the authority to submit advertising and to
agree to changes which may be required. The Division will not deal directly
with an advertiser who is not so authorized by the developer.

3. When the Division approves an item of
advertising, an approval number will be issued. The approval number and the
developer’s name must appear on the approved item and must be visible or
audible to the intended audience when it is published or circulated, unless the
Division specifically provides otherwise.

4. A bona fide press release is exempted
from these regulations and need not be submitted to the Division for approval,
and no advertising fee will be charged for it, if it:

(a) Is intended for publication without payment of
any consideration; and

1. Each item of advertising or modification
to an item of advertising which was previously approved constitutes a separate
application for approval, and a fee will be assessed for each item submitted.

2. Fees may be paid in cash or by cashier’s
check, certified check, personal check, company check or money order. If
payment of a fee is made by personal or company check, the Division will not
render a decision on the application until the check has been honored by the
drawee bank.

3. The following is the schedule of fees for
applications for approval of advertising:

(a) For each item of advertising, $5 per page to a maximum
of $25. If an item contains advertising matter on both sides of a page, the
item is considered to be two pages in length.

(b) For a television or motion picture
presentation, $25. If a script is submitted simultaneously with the television
tape or motion picture film, there is no extra charge.

Ê The developer
is responsible for the arrangements and the cost of making such advertising
available for review by the Division.

NAC 119.407Oral statements. (NRS 119.184, 119.240)Any oral
statement made to a prospective purchaser at a promotional meeting or on an
individual basis must comply with the standards for advertising set forth in NAC 119.410, 119.415 and 119.460 and subsection 1 of NAC
119.465.

(a) Statements and representations contained in the
advertising must be accurate and true.

(b) Advertising must fully state factual material
so as not to misrepresent the facts or create misleading impressions.

(c) All advertising must be consistent with the
information contained in the property report filed with the Division.

2. Advertising or promotional material will
be judged on the basis of the positive representations contained in it and the
reasonable inferences to be drawn from it. Any inference which may be
reasonably drawn from advertising or promotional material is deemed to be a
positive assertion unless the inference is negated in it in clear and
unmistakable terms, or unless adequate safeguards have been provided by the
developer to reasonably assure the occurrence of the thing inferred.

1. Advertising which refers to the purchase
price of any lot, parcel, unit or interest must also clearly disclose any
additional compulsory assessments or costs to the prospective purchaser.

2. Advertising which refers to
predevelopment sales being at a lower price, because the property has not yet
been developed in some manner, must disclose whether there is a bona fide plan
for development, and, if there is such a plan, the prospective completion date
must be stated.

3. Advertising may offer a discount which
effects a reduction of the advertised price only if the discount is offered for
a purchase in quantity, payment in cash, large or accelerated payment or on
other reasonable grounds. The purpose of this standard is to eliminate the use
of fictitious pricing and illusory discounts.

4. Advertising must not contain statements
concerning future price increases by the developer which are not specific as to
the amount and the date of the increase, and a future price increase may not be
alluded to unless it is bona fide.

5. Advertising must not state that land or
unit values have increased in the subdivision or the area unless the land or
unit used for comparison is directly comparable to the property being
advertised for sale.

1. Advertising which states the size of a
parcel or parcels offered must also disclose any easement to which any parcel
is subject and the nature of the easement. If an easement has a significant
effect on the use of a parcel, each map, plat or other representation of the
parcel must show the extent to which the use of the advertised parcel is
affected by the easement.

2. No improvement, facility or utility
service may be advertised unless it has been completed or installed and is
available for use, or completion and availability for use is assured through
adequate financial arrangements approved by the Division, including a
contractual obligation of the developer to the purchaser.

3. Advertising which refers to promised
improvements for which the prospective purchaser will be assessed must clearly
and fully disclose the assessments.

4. Advertising which contains statements
regarding taxes and their amount must state the latest available information.

1. Advertising which refers to oil, gas or
mineral rights must disclose all material facts pertaining to those rights in
conjunction with each reference to them.

2. If the property or any portion of the property
being offered for sale is regularly or periodically flooded or substantially
covered by standing water, or may be flooded in whole or in part through the
action of a governmental body, the advertising must clearly and prominently so
disclose.

3. Advertising which offers for sale any
land without a legal right of access to it must clearly and fully disclose that
fact and its legal effect.

[Dep’t of Commerce, Real Estate Div., § 46, eff. 7-16-80]

NAC 119.430Distances and mileage. (NRS 119.184, 119.240)Advertising
which refers to a community or geographical area in connection with a
subdivision must state the mileage from a specific point in the subdivision in
road miles to a specific point in that community or area, together with the
types of roads traversed.

1. Advertising must not imply a use of a
subdivision lot, parcel, unit or interest or other reason for its purchase
which is not set forth in the Nevada statement of record.

2. Advertising which contains statements,
photographs or sketches portraying the use to which advertised property may be
put by the purchaser must set forth qualified cost estimates for preparing the
land for the advertised use if the preparations will not be done by the
developer and the cost is not included in the purchase price.

3. Advertising may describe a parcel as a
potential homesite or building site only if:

(a) The parcel will be usable for the purpose
within 2 years without any further improvement or development by the
prospective purchaser, and an adequate supply of potable water is available;

(b) The parcel has been approved for installation
of a septic tank, or an adequate sewage disposal system is installed within 2
years;

(c) Within 2 years, no further draining, filling or
subsurface improvement will be necessary to construct a dwelling;

(d) Within 2 years, the homesite or building site
will be accessible by conventional automobile over all-weather roads and an
existing right-of-way without additional expense to the purchaser; and

(e) No other fact or circumstance, economic or
otherwise, exists or will exist to prohibit the use of the parcel or interest
as a homesite or building site.

4. Advertising must not state that the
property being offered for sale may be subdivided or resubdivided unless it
discloses all material facts regarding the cost and the present legality of
future subdividing.

1. Advertising must not contain statements,
photographs or sketches relating to facilities for recreation, sports or other
conveniences which are away from the subdivision and not in existence, unless
it is clearly and prominently disclosed in conjunction with the statement,
photograph or sketch that the facilities are only proposed and are not in the
subdivision, and the distance to them in road miles is given together with the
types of roads to be traversed. If the facilities are only proposed, the
developer must state a bona fide completion date in the advertising.

2. Advertising which refers to a public
facility must fully disclose the financial arrangements and completion date for
the facility.

3. Advertising must not refer to a public
facility which is only proposed or under study unless it fully and clearly
discloses that the facility is proposed or under study. If the advertising
refers to a proposed location or completion date for a proposed facility, it
must also disclose whether a decision to construct the facility has been
officially rendered by the responsible governmental authority.

4. As used in this section, “public
facility” means any facility which is available or will be available for use by
the general public as well as by purchasers of the subdivision and their
successors in interest.

1. Advertising may not include a map unless
it is drawn to scale and the scale is stated, or the map clearly and obviously
bears the label “not to scale.”

2. Maps, plats or other representations of a
subdivision development must indicate the date on which the subdivision
development will be completed. If completion dates extend over a period of
years, then a series of shadings, outlines or other coding may be used to
indicate dates of completion.

3. If advertising contains pictures, the
pictures must fairly and accurately depict the existing conditions of the
property being advertised for sale.

4. Advertising must not contain an artist’s
sketch which portrays proposed improvements or nonexistent scenes unless the
sketch is accompanied by a clear and obvious statement that the portrayal is an
artist’s sketch and that the improvements are proposed or the scenes do not
exist.

[Dep’t of Commerce, Real Estate Div., § 50, eff. 7-16-80]

NAC 119.450Misleading use of reprints, testimonial, reference symbol, or
name or symbol of organization. (NRS 119.184, 119.240)

1. Advertising may not include reprints of
previously published material unless the information contained in the reprint
is true and relates to the subdivision being offered, and complies with all
other provisions of these regulations.

2. Advertising must not include a
testimonial or endorsement which contains any statement that the developer is
precluded by law or regulation from making in his or her own behalf.

3. Advertising must not contain an asterisk
or other reference symbol which refers to explanatory material that contradicts
or changes, or tends to contradict or change, the meaning of any prior
statement or which obscures or tends to obscure any material fact.

4. Advertising must not contain a name or
symbol which implies that the advertiser is a public agency or a nonprofit,
research or other similar organization unless it is such an organization.

[Dep’t of Commerce, Real Estate Div., § 51, eff. 7-16-80]

NAC 119.455Disclosure of promotional purpose. (NRS 119.184, 119.240)All oral
and written advertising which is designed to induce any attendance at or
participation in a sales presentation must conspicuously include the following
statement: “The purpose of (the event or activity) is to attempt to sell you
property in (name of state in which property is located).”

1. Advertising must not contain the terms
“appraised,” “appraised value” or similar terms without specifying the
statistics or research which support the conclusions, including:

(a) The date of the appraisal;

(b) The appraiser’s name, address and telephone
number;

(c) Any limiting conditions and other special
factors of the appraisal; and

(d) The relationship of the appraiser to the
developer.

2. Advertising must not contain the terms
“minutes away,” “short distance,” “only miles,” “near” or similar terms which
are intended to indicate distance unless the actual distance in miles along a
road is stated together with the types of roads traversed.

3. An advertised promotional offer must not
use the terms “free,” “no obligation” or terms of similar import to describe
that which is offered unless the offer is unequivocally without conditions.

4. A lot or interest must not be advertised
as being “free” if the prospective purchaser is required to give any
consideration or if any additional lots or interests must be purchased to render
the “free” lot or interest usable. A lot or interest may be advertised as being
offered “for closing costs only,” if the closing costs are fully disclosed.

5. Advertising which refers to or depicts
“roads” or “streets” must affirmatively disclose the nature of those roads or
streets, including whether the roads or streets are:

(a) Paved, gravel or dirt; and

(b) Traversable year-round by a conventional
automobile.

6. Advertising may use the term “waterfront”
property or other terms of similar import only if the lot, parcel, unit or
interest being offered actually fronts on a body of water and has full and
usable access along the frontage.

1. Before a developer uses promotional
meetings, a statement of the nature and manner of conducting the meetings must
be submitted in writing as a part of his or her written plan, and approved by
the Division.

2. In reviewing the materials submitted by
an applicant under NRS 119.140,
the Administrator will investigate whether the nature and manner of conducting
promotional meetings will bring about a full disclosure of all material facts
concerning the subdivision.

[Dep’t of Commerce, Real Estate Div., § 55, eff. 7-16-80]

NAC 119.510Standards for promotional meetings. (NRS 119.240)Promotional
meetings must conform to the following standards:

1. All advertising in promotional meetings
is subject to the standards of advertising set forth in these regulations;

2. No use may be made of shills or false or
dummy buyers in promotional meetings to initiate sales or for any other
purpose;

3. Oral statements made to prospective
purchasers at promotional meetings must be completely consistent with written
advertising or other material filed with and approved by the Division;

4. Any prospective purchaser who expresses a
desire to leave a promotional meeting at any time during or after the sales
presentation may not be impeded in any manner from departing or coerced or
pressured to remain;

5. Investigators and other employees of the
Division may attend any promotional meeting;

6. Excessively loud music must not be played
during promotional meetings and division employees who are present at the
meeting may request that music be turned down or off;

7. After the original salesperson makes
initial contact with a prospective purchaser, the developer or broker may allow
only one additional salesperson to take over and attempt a sale, except a speaker
making a speech from a podium;

8. A division employee who is present at a
sales presentation may not be identified, singled out or asked questions in
such a way that potential purchasers might hear the question or the employee’s
remarks; and

9. If a broker or developer at any time
before, during or after a promotional meeting uses any electronic surveillance,
recording, eavesdropping or listening device, its use must be disclosed orally
at the beginning of the meeting and also by means of a sign or placard
prominently displayed in the meeting room, fully disclosing the use of the
devices in the meeting.

1. Before a developer advertises or promotes
a subdivision with a program which includes the use of vacation or other gift
certificates, he or she must submit in writing as a part of his or her written
plan a description of the program, along with the following:

(a) Copies of the vacation or gift certificates and
other published materials to be used in the program;

(b) The names of the companies with which he or she
has contracted to provide the goods or services offered in a certificate; and

(c) Evidence satisfactory to the Division that he
or she has firm commitments with the hotels, motels or other suppliers of
accommodations which will be used as part of a program using vacation
certificates, and, if required by the Administrator, provide financial
assurances that he or she can and will honor his or her commitments with
certificate holders as well as with the suppliers.

2. Vacation and other gift certificates must
conform to the standards for advertising set forth in these regulations, and
the following standards:

(a) Each certificate must contain a fixed date for
the expiration of rights afforded certificate holders; and

(b) The nature of the gift or other benefit must be
clearly and fully disclosed. The disclosure must include a description of:

(1) What the prospective purchaser will
actually receive;

(2) When he or she will receive it;

(3) His or her obligations, if any; and

(4) All other material conditions or
limitations placed on the gift or benefit.

3. Any change in the date of expiration or
in the identity of the certificate companies or the hotels, motels or other
suppliers of accommodations used in the program is a material change in the
written plan, and notice of the change must be given to the Division for its
written approval before the effective date of the change.

4. When personal contact is made with the
holder of a certificate, the developer, real estate licensee or other agent
shall clearly identify himself or herself and his or her status of employment
with regard to the subdivision.

NAC 119.530Contracts, agreements and other documents of sale. (NRS 119.240)

1. All contracts, agreements and other
documents used in the sale of subdivision property are subject to the standards
for advertising in this chapter.

2. The following language must be printed
clearly and conspicuously in 12-point boldface type at the top of all contracts
for the sale of land:

This is a binding contract by
which you agree to purchase an interest in real property. You should examine
your rights of revocation contained elsewhere in this contract.

3. The following language or language of
similar import may not be used in a contract of sale of a subdivision or lot,
parcel, unit or interest in a subdivision: “Purchaser agrees that no
representations, oral or implied, have been made to purchaser other than what is
contained in this contract.”

4. The following words must be printed
clearly and conspicuously immediately above the purchaser’s signature in each
contract for the sale of real property:

The purchaser of any subdivision
or any lot, parcel, unit or interest in any subdivision not exempted pursuant
to the provisions of NRS 119.120
or 119.122 may cancel the
contract of sale, by written notice, until midnight of the fifth calendar day
following the date of execution of the contract, unless the contract prescribes
a longer period for cancellation. The right of cancellation may not be waived.
Any attempt by the developer to obtain such a waiver results in a contract
which is voidable by the purchaser.

The notice of cancellation must
be delivered personally to the developer or sent by certified mail or telegraph
to the business address of the developer.

The developer shall, within 15
days after receipt of the notice of cancellation, return all payments made by
the purchaser.

5. Every contract of sale of subdivision
property located outside Nevada which is sold within this state must contain
one of the following sentences:

This contract is to be construed
according to the laws of the State of Nevada and specifically chapter 119 of NRS, or

This contract is to be construed
according to the laws of ....... Any purchaser solicited in the State of Nevada
retains those rights granted him or her under chapter 119 of NRS.

6. No developer, real estate licensee or
other agent may make any written or oral statement which changes or tends to
change the true nature or legal significance of any contract or legal document
approved by the Division.

7. All major improvements which are promised
in a subdivision offer must be stated in the contract so as to bind legally the
developer to provide them. The Division will decide which improvements are
considered major. With the prior approval of the Division, major improvements
which are promised in a subdivision may be included in the contract by
reference to another document.

8. Every contract of sale of subdivision
property which does not require the delivery of a deed to the purchaser within
180 days after the date of sale must be executed in a form which is acceptable
for recordation under the law of the jurisdiction where the property is
located. A purchaser under such a contract must be advised at the time of the
sale that the contract should be recorded in the county where the property is
located or as otherwise required by law in order to give notice of the
purchaser’s interest in that property. This subsection does not apply to a
contract of sale in which the fee title is placed in trust under an agreement
or trust acceptable to the Division as provided in subsection 2 of NRS 119.230.

NAC 119.600Revocation or suspension of license: Formal hearings. (NRS 119.325)If the
Division desires to revoke or suspend the license, permit or registration of a
developer, broker, salesperson or registered representative, it will hold a
formal hearing after initiating a complaint and giving notice as follows:

1. Upon a complaint being initiated by the
Division, the Administrator will schedule the matter for a hearing within 30
days before a person who has not investigated or prosecuted the complaint.

2. The time of the hearing may be continued
by the Division or upon motion of the respondent with the approval of the
Administrator or a designated hearing officer thereof.

3. The Division will give the respondent at
least 20 days’ prior notice in writing of the date, time and place of the
hearing, which notice will contain a copy of the complaint, including an exact
statement of the charges together with copies of all reports, affidavits and
depositions in possession of the Division which may be used in evidence against
the respondent.

4. Notice of the hearing may be served by
personal delivery to the respondent or by mail to his or her last known
business or home address. If the respondent is a salesperson, the Division will
also notify by mail the broker employing him or her.

5. The respondent may file an answer within
20 days after service of the notice. The answer must contain an admission or
denial of each of the averments contained in the complaint and any defenses
upon which the respondent will rely.

6. The answer may be served by personal
delivery to the Division at its office in Las Vegas or Carson City or by mail
to the principal office of the Division.

7. Before the hearing, the Division may
request, and the respondent may produce upon request, documents and other materials
which are under his or her control. The Division may take depositions and
obtain material by subpoena.

8. All witnesses at the hearing will be
sworn by the Administrator or the designated hearing officer and a tape
recording of the proceedings will be made and included as a part of the record
in the case.

1. The Administrator or the hearing officer
will render a decision within 30 days after the date of the hearing and
immediately give notice in writing of the decision to the respondent.

2. If the decision is adverse to the
respondent, the Administrator or hearing officer will also state in the notice
of decision the date upon which the decision becomes effective, which will not
be less than 30 days after the date of the notice.

[Dep’t of Commerce, Real Estate Div., § 60, eff. 7-16-80]

NAC 119.620Informal meetings. (NRS 119.240)The
Division will schedule an informal meeting rather than a formal hearing for
matters which may be settled or otherwise do not require a formal hearing, in
accordance with the following procedures:

1. The Division will initiate the procedure
for an informal meeting by giving notice which must include a concise statement
of all the facts necessary to understand the possible violation and a brief
statement of the relief desired by the Division, if appropriate;

2. Informal meetings will be held by the
Administrator or a designee thereof at a time and place prescribed by the
Administrator;

3. The Administrator, the designee or any
other party may require a tape recording to be made of the informal meeting;

4. The initiation of an informal meeting by
the Division is without prejudice to its right to initiate a complaint and
formal proceedings covering the same subject matter pursuant to these
regulations; and

5. All matters discussed and all material
presented in an informal meeting may be used in a subsequent formal hearing,
and the Division will inform all parties of that fact at the beginning of the
informal meeting.

1. Any person aggrieved by an action of the
Division except the revocation or suspension of a license pursuant to these
regulations, may petition the Division for reconsideration of its action within
15 days after its order.

2. The petition must be in writing and state
in detail the grounds on which the petitioner relies.

3. If the petitioner desires to present oral
argument with the petition, oral argument must be requested in writing at the
time the petition is submitted to the Administrator. If oral argument is
requested, the Division will set a time for a hearing to occur no later than 20
days after receipt of the petition. The Division will give at least 15 days’
notice of the hearing.

4. No later than 15 days after receiving the
petition or hearing of oral argument the Division will render a decision in
writing to the petitioner.

[Dep’t of Commerce, Real Estate Div., § 62, eff. 7-16-80]

NAC 119.650Petition for adoption of regulations. (NRS 233B.100)Any
interested person may petition the Administrator requesting the adoption,
amendment or repeal of any regulation. The petition must be submitted in
written form, clearly and intelligibly set forth the regulation requested to be
adopted, amended or repealed, and be accompanied by relevant data, views and
arguments. The Administrator will within 30 days either deny the petition in
writing, stating the reasons, or initiate proceedings for the adoption of
regulations in accordance with NRS
233B.060.